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17:22 09Nov09 RTRS-Taiwan dollar near 3-wk high on fund inflows * Rising stocks trigger fund inflows * US$ falls globally after G20 officials hold back on action * Central bank buys U.S. dollars to pare gains (Updates to close) TAIPEI, Nov 9 (Reuters) - The Taiwan dollar rose for a fourth straight session to a near three-week high on Monday, spurred by exporter purchases of the currency and foreign fund inflows following gains in local stocks. The Taiwan dollar rose to as high as T$32.341 to the U.S. dollar before erasing some gains to end at T$32.365, the strongest close since Oct. 21. "Foreign investors in spot and offshore markets were unloading U.S. dollars, and the local currency is expected to track higher as demand for risky assets picks up on a stronger economy," said a dealer in Taipei. The Taiwan dollar is expected to trade between T$32.2 and T$32.5 this week, the dealer said. Foreign institutions were net buyers of Taiwan shares for a second session on Monday, grabbing T$5.8 billion ($179 million) in shares as the stock market <.TWII> finished up 0.99 percent. Exporters, who anticipated further gains in the Taiwan dollar amid optimism about a stronger global economy, offered U.S. dollars at T$32.400. At weaker rates, they can exchange more foreign currency, using Taiwan dollars for cash needs at home. The local currency also found support in a globally weaker U.S. dollar, after a meeting of the Group of 20 finance officials failed to take any concrete action to rebalance global flows or talk more specifically about the dollar's recent decline [ID:nLQ516726]. Pressuring the currency, Taiwan's central bank bought U.S. dollars on Monday as part of its effort to keep the currency from rising too rapidly, dealers said. The monetary authority keeps the currency in a managed float. 0800 GMT PREVIOUS SESSION T$ (Taipei Forex Inc) 32.365 32.509 Volume in $ mln (Taipei Forex Inc) 888 593 T$ (Cosmos) 32.342 32.495 Six-month NDFs -0.850/-0.800 -0.720/-0.700 Note: Taipei Forex Inc is Taiwan's main forex exchange; Cosmos is a smaller exchange. Both exchanges end trading at 0800 GMT Source: NDFs quotations from Prebon Asia For more foreign exchange news, please click [nTOPFRX] (Reporting by Joan Hsu and Argin Chang; Editing by Jacqueline Wong) ((gina.chang@thomsonreuters.com; +886 2 2508-0815; Reuters Messaging: gina.chang.reuters.com@reuters.net)) ((If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com)) Keywords: MARKETS TAIWAN CURRENCY/
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